Government to sell majority stake in Green Investment Bank
The British government announced on Thursday its plans to sell a majority stake worth £1.4bn in its state-backed Green Investment Bank to bring it into private ownership.
According to reports, the government is likely to keep a shareholding in the Bank but could sell as much as 70% and use the funds to pay down the deficit.
Stake sales will need to meet certain criteria such as delivering value for money for taxpayers, the government said in a statement.
"We want the Green Investment Bank to attract more investment," Chancellor George Osborne said.
Business Secretary Sajid Javid’s decision came day the bank announced it had moved into profit. Profits surged to £3.2m in the second half of its 2014-15 financial year, making £100,000 over the year as a whole.
The bank was created in 2012 by the UK government to support green energy projects in Britain and to mobilise other private sector capital into the country's low-carbon energy sector. It was capitalised with an initial £3.8bn of public funds.
The UK Government led the world in their vision and commitment in setting up the world’s first dedicated green investment bank
Since its creation, it has committed £2bn and has helped fund 50 green infrastructure projects, including waste management and offshore wind farms.
“The UK government led the world in their vision and commitment in setting up the world’s first dedicated green investment bank, so we are delighted to have their support as we enter a new phase and seek additional investors in our business,”Lord Smith of Kelvin, Chair of the Green Investment Bank, will say at the Bank’s London Annual Review event.
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